8th Pay Commission latest news: The latest news from sources is that the government can form a team (panel) for this in May 2025. As soon as this team is formed, the work will start immediately.
8th Pay Commission latest news: The biggest good news is about to come for lakhs of central government employees and our senior citizens receiving pension – 8th Pay Commission. And the latest news from sources is that the government can form a team (panel) for this in May 2025. As soon as this team is formed, the work will start immediately. Meaning, good days are coming for crores of people waiting for a good increase in salary and pension. Now as the matter of formation of the team is getting confirmed, questions are also increasing in the minds of the people – who will be in this team? How much will be the fitment factor (which increases the salary)? What will happen to dearness allowance (DA)? And the biggest question is – how much will the money in your pocket increase?
8th Pay Commission: What will the team be like?
The inside news is that the government has started forming the team of the 8th Pay Commission and the names can be finalized by May 2025. This team is very important, because it tells the government how much the salary should be increased. What will the team be like? If we look at the previous commissions, the boss (chairman) of the team is often a retired Supreme Court judge or a senior government officer. Along with this, there are some well-known economists (experts in Economics), experts who keep accounts of expenses and experts of government job rules.
8th Pay Commission: Who can be included?
The names have not been revealed yet, but it is expected that there will be people in the team who have a good understanding of the government treasury, the country’s economy and the needs of the employees. Only then will they be able to make a report for the welfare of all.
8th Pay Commission: What recommendations can the team make?
After the team is formed, it will first talk to employee unions, different ministries and experts. It will see how much inflation is these days, how much money the government has and what the employees need. Then it will give its report, in which these things can be given special attention.
1. Fitment Factor:
This is the hottest topic. Fitment factor is that magical number, by which your today’s basic salary is multiplied to make a new basic salary. In the 7th Pay Commission, it was 2.57 times. Employee unions are saying to make it 3.68 times. But experts believe that it can be 2.80 to 3.0 times or maybe a little more.
2. Dearness Allowance (DA):
It is certain that when the 8th Pay Commission is implemented (expected from 1 January 2026), whatever DA is being received till then (estimated to be more than 60%) will be merged in the basic salary. The same happened with 125% DA during the 7th Commission. After the DA is added, the DA count on the new basic salary will start again from 0 (zero).
3. New Pay Structure/Matrix:
The pay matrix that is currently in place can be improved. It is possible that some levels may be removed or merged, so that the errors in the salary can be corrected.
4. Other Allowances:
The rules and money for allowances like house rent allowance (HRA), commuting allowance (TA), children’s education allowance (CEA) can also change. HRA can change according to cities, and other allowances can also be updated according to the current times.
5. Pension:
These recommendations will not only be for those who are employed, but also for our elders who receive more than 65 lakh pensions. There will also be a discussion on how their pension will be decided.
How much will your salary increase? (Expected Salary Hike)
The increase in salary depends on two things – how much DA is added to the basic and how much fitment factor is received.
1. Effect of DA addition:
Suppose 60% DA is added to the basic, then the salary will increase significantly.
2. Role of fitment factor:
Then the fitment factor will be added. If it is 3.0 times, then your basic salary of the 7th commission will become almost three times (which will also include the added DA).
3. Estimate:
Overall, employees at different levels can see an increase of 25% to 40% or even more in their gross salary. This will depend on your post (level), today’s basic salary and fitment factor. For example, if someone’s basic is ₹ 18,000 and the fitment factor is 3.0, then the new basic can be around ₹ 54,000 (this is just an estimate).
8th Pay Commission: What will happen next? (Timeline)
1. When will the team be formed:
May 2025 (according to sources)
2. When will the report come:
The team takes 15-18 months to prepare the report. So the report can come in late 2026 or early 2027.
3. When will it be implemented:
No matter when the report comes, it will be considered that the 8th Pay Commission is applicable from January 1, 2026. And the previous dues (arrears) will also be received.
8th Pay Commission: So this is the thing…
The wait for the 8th Pay Commission is in full swing and the news of the formation of the team in May 2025 has further increased the hopes. There is still time for the final report to come, but the changes that are expected in the fitment factor, DA merger and allowances will definitely bring a big and good change in the lives of government employees and pensioners. Now everyone’s eyes are fixed on the formation of the team and its recommendations.
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